Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. Write a paragraph explaining what you find. (Round percentages to two decimal places.) Becker Corporation Income Statements For the Years Ended December 31 Year 2 Revenues Operating expenses: Wages expense Rent expense Utilities expense Interest expense Total operating expenses Net income Year 1 $394,000 $212,500 $ 79,000 $ 65,000 19,000 18,000 21,000 14,200 7,500 7,800 $126,500 $105,000 $267,500 $107,500

Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. Write a paragraph explaining what you find. (Round percentages to two decimal places.) Becker Corporation Income Statements For the Years Ended December 31 Year 2 Revenues Operating expenses: Wages expense Rent expense Utilities expense Interest expense Total operating expenses Net income Year 1 $394,000 $212,500 $ 79,000 $ 65,000 19,000 18,000 21,000 14,200 7,500 7,800 $126,500 $105,000 $267,500 $107,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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